02/24/2021
It’s very important to know all of your options before applying for a home loan. Many lenders ONLY offer qualified mortgages which are:
-conventional loans (which meet the conforming loan limits, require mortgage insurance when the loan to value is greater than 80 and allows for few credit challenges)
-FHA (which requires upfront mortgage insurance and allows for more credit challenges)
-VA (which is a loan for prior military service members either active duty or honorable discharged, may require a funding fee, may be eligible for no money down)
-USDA (which is used to purchase homes in rural areas, has a max income, and may allow for no money down)
-Prime Jumbo (which is a loan that exceeds the county limit loan amount which is $548,250 for most counties but there are some high balance counties)
There are also non- qualified mortgages:
-Bank statement loans (for business owners that have been in business for at least 2 years and their income taxes does not reflect their full income, 30 or 15-year-fixed)
-Investor Cash Flow (allows a borrower to purchase a home based on the potential rental income of a property and does not require income docs)
-Platinum Program (Loans up to $3 million, Minimum loan of $250,000, 4 years seasoning for foreclosure, short sale, bankruptcy or deed-in-lieu, Owner-occupied, 2nd homes, and non-owner occupied, Purchase and cash-out or rate-term refinance, Full doc only, 40 year fixed interest only available)
-Portfolio select (Loans up to $2.5 million, 2 years seasoning for foreclosure, short sale, bankruptcy or DIL, Purchase and cash-out or rate-term refinance, Owner-occupied, second homes, and investment properties, Non-warrantable condos ok, Up to 50% DTI, Gift funds allowed, 40 year fixed interest only available)
Asset Qualifier (Loans up to $3 million, Minimum loan of $250,000, No employment, no income, no DTI, Rates are 30-year fixed, 5 Years seasoning foreclosure, short sale or bankruptcy, Primary residence, purchase or refinance, Interest only program available, Non-warrantable condos considered, All assets must be sourced and seasoned for a minimum of 6 months)
